Borrowing capacity
Lenders assess borrowing capacity using the GDS (gross debt service — housing costs / income) and TDS (total debt service — housing + debt / income) ratios, and apply a stress test on the rate. This calculator estimates the maximum you could borrow.
Total household income before taxes.
Monthly payments for existing debts (car loan, credit cards, etc.).
Length of the mortgage (often 25 years).
Lender threshold for the GDS (gross debt service) ratio: share of income allowed for housing (mortgage + taxes + heating). Typically 39%.
Threshold for the TDS (total debt service) ratio: housing + other debts as % of income. Often 44%.
Results
Visualisation
Details
Max payment under the GDS (gross debt service) ratio = gross income × max GDS ratio ÷ 100. Borrowing capacity is the mortgage principal that this payment would service at the rate and amortization you entered (inverse of the monthly payment formula). We use the more restrictive of the GDS limit and the TDS (total debt service) limit.